The business case for outsourcing your payroll
It doesn’t matter how many members of staff you have working for you, getting the payroll right is crucial to your business.
The main reasons companies outsource payroll services are to save time and to make sure they’re fully compliant with legislation. If you’re not a payroll specialist, then you’ll have to spend time trying to get to grips with the process when you could be more productively working on your core business instead. Payroll can be straightforward to implement if your employee/s have no issues. But most of the time there are other things to be taken into account such as statutory sick pay, maternity pay, student loans, deductions earnings orders etc.
Keeping in line with legislation is hugely important, so if you’re not outsourcing, you will need to be pro-active to make sure you don’t risk having to pay fines for not getting it right. Legislation about tax, NI and pensions is changing all the time and you could be spending precious time away from your core business researching changes in the rules.
At the moment, companies are getting to grips with the new rules about workplace pensions. Your payroll company can help you implement this and will assist with enrolment of team members and uploading the correct data direct to the pension provider, saving you a lot of time in the process.
If you weigh up the amount of time you would need to spend every month making sure you complete the payroll correctly and on time, at the same time as continually researching the legislation to make sure you are up-to-date with the laws, it becomes obvious that outsourcing payroll is a cost-effective exercise. And there’s always the worry that if you are not concentrating your time and energy on your core business, you could actually be losing business as a result. And if you make mistakes in the payroll, your business could be subject to fines.
Also, if you run a smaller company, outsourcing will be much more cost-effective than having dedicated team members to run your payroll. Outsourcing also solves the potential problems caused by staff sickness and holidays.
HB Accountants have a dedicated department of payroll professionals who will take care of all your payroll needs. We use HMRC-compliant software and deal with companies of all sizes, from sole traders to limited companies with over 100 employees. If you would like to find out how we can help your company payroll, contact us for more information.